Sign in
Author

Conference

Journal

Organization

Year

DOI
Look for results that meet for the following criteria:
since
equal to
before
between
and
Search in all fields of study
Limit my searches in the following fields of study
Agriculture Science
Arts & Humanities
Biology
Chemistry
Computer Science
Economics & Business
Engineering
Environmental Sciences
Geosciences
Material Science
Mathematics
Medicine
Physics
Social Science
Multidisciplinary
Keywords
(7)
Best Response Dynamics
Dynamic Instability
Evolutionary Game Theory
Limit Cycle
Numerical Simulation
Price Dispersion
Time Varying
Related Publications
(2)
The stability of price dispersion under seller and consumer learning
Existence and Persistence of Price Dispersion: an Empirical Analysis
Subscribe
Academic
Publications
The dynamic instability of dispersed price equilibria
The dynamic instability of dispersed price equilibria,10.1016/j.jet.2011.05.014,Journal of Economic Theory,Ratul Lahkar
Edit
The dynamic instability of dispersed price equilibria
(
Citations: 5
)
BibTex

RIS

RefWorks
Download
Ratul Lahkar
We adopt an evolutionary framework to explain
price dispersion
as a
time varying
phenomenon. By developing a finite strategy analogue of the Burdett and Judd (1983)
price dispersion
model, we show that all dispersed price equilibria are unstable under the class of perturbed best response dynamics. Instead, numerical simulations using the logit dynamic show that
price dispersion
manifests itself as a limit cycle. We verify that limit cycles persist even when the finite strategy model approaches the original continuous strategy model. For a particularly simple case of the model, we prove the existence of a limit cycle.
Journal:
Journal of Economic Theory  J ECON THEOR
, vol. 146, no. 5, pp. 17961827, 2011
DOI:
10.1016/j.jet.2011.05.014
Cumulative
Annual
View Publication
The following links allow you to view full publications. These links are maintained by other sources not affiliated with Microsoft Academic Search.
(
www.sciencedirect.com
)
(
else.econ.ucl.ac.uk
)
(
www.isid.ac.in
)
(
eprints.ucl.ac.uk
)
More »
Citation Context
(3)
...But it will be shown in this paper that (at least for low dimensional games) the Shapley polygon is unique. A similar problem is addressed in [
13
]...
...In contrast to Varian [18] discrete prices are used and a dynamical approach is taken in this paper. I use a simplification as in [
13
]...
...But as simulations in [
13
] show the number of customers who check more than two prices goes to zero under learning behaviour...
...[
13
], where prices are given as an arithmetic sequence...
...This monocyclicity result can be found in [1, 8 ]o r [
13
]...
...In [
13
] a uniform price distribution {0, 1 , 2 ,..., 1} is used to construct a finite approxima...
...tion of S =[ 0, 1]. But whenever there is a positive number of uninformed customers there are dominated strategies, so the game can always be analysed by looking at a restricted game. I follow Example 6.2 from Lahkar [
13
]...
...This is also found in [
13
] for perturbed best response dynamics...
Martin Hahn
.
An Evolutionary Analysis of Varian’s Model of Sales
...5 See especially Hopkins and Seymour (2002) and
Lahkar (2007)
, who argue that mulitiplicity of prices in models of price dispersion (Burdett and Judd (1983), Varian (1980)) is the result of cyclical rather than equilibrium behavior...
William H. Sandholm
,
et al.
Survival of dominated strategies under evolutionary dynamics
...Clearly, the vector eld generated by the two operators in (
27
) and(28) is identical to the vector...
...We write R = R1, as in (
27
), for the replicator operator in the symmetric case.24...
Ratul Lahkar
,
et al.
Reinforcement Learning in Large Population Models: A Continuity Equati...
References
(60)
Optimization Incentives and Coordination Failure in Laboratory Stag Hunt Games
(
Citations: 70
)
Raymond Battalio
,
Larry Samuelson
,
John Van Huyck
Journal:
Econometrica
, vol. 69, no. 3, pp. 749764, 2001
Price Dispersion in the Lab and on the Internet: Theory and Evidence
(
Citations: 66
)
Michael R. Baye
,
John Morgan
Journal:
Rand Journal of Economics  RAND J ECON
, vol. 35, no. 3, 2004
Mixed Equilibria and Dynamical Systems Arising from Repeated Games
(
Citations: 6
)
M. W. Hirsch
Published in 1999.
Learning in games with unstable equilibria
(
Citations: 14
)
Michel Benaïm
,
Josef Hofbauer
,
Ed Hopkins
Journal:
Journal of Economic Theory  J ECON THEOR
, vol. 144, no. 4, pp. 16941709, 2009
Experienceweighted Attraction Learning in Normal Form Games
(
Citations: 450
)
Colin Camerer
,
TeckHua Ho
Journal:
Econometrica
, vol. 67, no. 4, pp. 827874, 1999
Sort by:
Citations
(5)
An Evolutionary Analysis of Varian’s Model of Sales
Martin Hahn
Published in 2012.
Survival of dominated strategies under evolutionary dynamics
(
Citations: 6
)
William H. Sandholm
,
Josef Hofbauer
Published in 2011.
Survival of Dominated Strategies under Evolutionary Dynamics
(
Citations: 11
)
Josef Hofbauer
,
William H. Sandholm
Published in 2008.
Logit Dynamic for Continuous Strategy Games: Existence of Solutions
(
Citations: 1
)
Ratul Lahkar
Reinforcement Learning in Large Population Models: A Continuity Equation Approach
Ratul Lahkar
,
Robert M. Seymour